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Pakistan Taps Global Markets to Cut Reliance on Bilateral Loans

Source: Bloomberg

Sovereign Debt & RatingsGeopolitics & WarBanking & LiquidityFiscal Policy & BudgetTrade Policy & Supply Chain

Pakistan is looking for alternative funding after the UAE declined to roll over a $3B loan earlier this year, highlighting refinancing risk from reliance on bilateral financing. The setback likely increases near-term liquidity and sovereign funding pressure, with implications for risk premia and market sentiment toward Pakistan’s external financing needs.

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